Billionaire Bernie floats Formula One's future

After more than a year of hold-ups and setbacks, Bernie Ecclestone's Formula One Holdings has launched a $1.4 billion bond float on the Eurobond market.

31 May 1999Bob Jennings and wire services

After more than a year of hold-ups and setbacks, Bernie Ecclestone's Formula One Holdings has launched a $1.4 billion bond float on the Eurobond market.

The bonds are secured against the future of Formula One, and follow the signing of the latest Concorde Agreement between the teams. All cash raised by the eventual bond sale is understood to be going to a family trust linked to Ecclestone.

The long-awaited confirmation of the bond sale came at the start of the Spanish Grand Prix weekend in Barcelona and will pave the way for the eventual float of Ecclestone's company on the stock market.

The plan is that Formula One will be a global sport, with massive television markets, owned by public shareholders and run by executives, and not just by Ecclestone.

In a statement, Ecclestone said: "Now that we have successfully completed this transaction, we look forward to the future stock market flotation of this exciting business. We can now build on the relations we have established with the investment community."

At present, Ecclestone's formal title is chief executive officer of Formula One Holdings, the company which owns and controls the exclusive commercial and broadcasting rights to the sport.

The sale of the bond will give the company a massive cash boost and offer Ecclestone a range of fresh possibilities for further investments, through the growth of Formula One or by branching out into other sports.

Last year, he was linked with the Italian Media Partners marketing agency which was behind plans to create a breakaway European soccer super league. Those plans stimulated the reformation of European soccer by ruling body UEFA and the creation of the expanded European Champions League which starts in August this year.

Ecclestone was also said to be interested in helping create the digital television structure which would broadcast all the breakaway European league games. He has already created a digital television business for Formula One.

He has been linked with tennis and is in close contact with former player and agent Ion Tiriac and with Boris Becker. It is believed he has shown interest in helping to set up a worldwide tennis circuit run on similar lines to Formula One.

The bond sale is also believed to mark the first time cash has been raised on the value of future income from TV sporting rights.

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